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Halliburton (HAL) will announce earnings for its fourth quarter (4Q) of fiscal year 2013 (FY13), on January 21.
The oilfield services company is the second largest in the industry after Schlumberger Limited (SLB), which announced its earnings on Friday, beating EPS estimates by 2.1% but missing revenue estimates by 0.6%.
According to a recent report by Barclays, oil and gas companies will spend about $723 billion on exploration and production (E&P) in 2014, an increase of 6.1% from 2013. This should benefit the oilfield services giant.
Halliburton should also benefit from resurgent spending in its principal market, North America. After a relatively sluggish 2013, when spending grew about 2%, the region could see capital expenditures rise by as much as 7% to around $156 billion in 2014.
The overall spending mix is also expected to move away from large infrastructure projects towards oilfield services such as drilling and evaluation, translating into better business for large oilfield service companies such as Halliburton.
For 4QFY13, analysts expect earnings per share (EPS) to be about $0.89. In 4QFY12, the company reported EPS of $0.67. If the company beats analysts’ estimates, just like it did in the last quarter, this would signify a 32.8% year-on-year (YoY) increase. Analysts also anticipate revenues to rise to $7.55 billion, from $6.97 billion reported a year ago, an increase of 8.4% YoY.
Petroleo Brasileiro SA Petrobras (PBR) had announced a 15% increase in fuel oil prices on December 30, but did not report it to market regulators at the time. Yesterday, the company confirmed that prices had been raised.
According to management the company did not inform regulators because it did not consider the price increase to be a relevant fact since fuel oil is a very small part of their business.
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Kinder Morgan Energy Partners, L.P. (KMP), one of the largest publicly traded master limited partnerships (MLPs) in the pipeline business, posted EPS of 83 cents for the fourth quarter (4Q) of fiscal year 2013 (FY13), beating estimates by 3 cents.
The company reported revenues of $3.47 billion, which were 1.15% higher than analysts’ expectations of $3.43 billion.
Chairman and CEO Richard D. Kinder said: “KMP had a strong fourth quarter and a very successful year. We are excited about 2014 and continue to see exceptional growth opportunities across all of our business segments.”
Royal Dutch Shell PLC (RDS.A) has lowered earnings guidance for 4QFY13 and the stock price has fallen 2.5% in pre-market trading. Earnings are projected to decline to $2.9 billion.
Shell expects that the income from the upstream segment will fall from $4.2 billion in 4QFY12 to $2.4 billion in 4QFY13, a reduction of 40%.
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Schlumberger Limited (SLB) reported EPS of $1.35 for its fourth quarter (4Q) of fiscal year 2013 (FY13), beating analysts’ estimates of $1.32 by 2.2%. The company’s EPS has increased 29.8% year-over-year (YoY).
Read More : SLB
Total S.A (TOT) has become the first major oil and gas company to strike a deal to explore for shale gas in Britain. The French group said on Monday that it had bought a 40 percent interest in two licenses in the Gainsborough Trough area of northern England for up to $48 million.
This follows shale gas deals by Centrica and GDF Suez and puts Britain firmly on the map as one of Europe’s strongest prospects for the development of unconventional oil and gas resources.
Total’s Senior Vice President for Northern Europe, Patrice de Vivies, said in a statement: “This opportunity is an important milestone for Total E&P UK and opens a new chapter for the subsidiary in a promising onshore play.”